Too Late: Suit Says Debt Collector Demands Payment of Time-Barred Debt

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Midland Credit Management, Inc. is the defendant in a proposed class action lawsuit filed by a New York woman who claims the debt collector illegally attempted to collect on a time-barred debt. According to the complaint, Midland Credit sent the plaintiff a debt collection letter after the two-year statute of limitations had expired on her alleged debt. The suit argues that the letter failed to indicate to the plaintiff that the statute of limitations was believed to be expired, that the debt collector is not legally permitted to sue on a time-barred debt, and that if the plaintiff “admits, affirms, acknowledges, or promises to pay” the alleged debt, the statute of limitations may be renewed. Failure to disclose this information, according to the complaint, violates New York state law and causes the letter to be considered “misleading” and unlawful according to the Fair Debt Collection Practices Act.